suspension, page-35

Newbie,
I accept the argument that some undervalued companies are a good prospect to be turned around. I thought AMU was one of these.

However some companies are dogs that will never have a share price equal to the value per share of its assets. In my view AMU is one of these.

Deciding whether a stock is temporarily misunderstood or a permanent canine is subjective. To support my view I point out the following;

1) The model of an Australian listed company buying US assets is broken. It is value destroying because it assumes we can do better than the yanks in their backyard and because of tax leakage. We don't get franking credits for tax paid in the US but we do on profit taxed in Australia.

2)Most Australian companies operating in the US have traded for the long term under their asset value.

3)This situation has not been short term at AMU. It has been a long term issue despite every tactic to turn around.

4)The ARW debacle and the inexplicable sponsorships have caused a permanent lack of market confidence.

5)If the company is not now sold off the share price will drop significantly lower than the offer price.

In my opinion this company has been given every leeway to right itself over a long period.

Enough. Its time to sell up.

Bacci